The Real Estate Market Watch - Current Events Through A Real Estate Lens. podcast

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Worth Knowing with Bonnie Habyan

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#11: From OJ Simpson Case to Best Selling Author - Marcia Clark Shares Latest Real Crime Book Release and How Resilience Is Key to Success and Reinvention 34:35

vor 10 Tagen34:35

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Marcia Clark, best known as the lead prosecutor in the O.J. Simpson trial, has become a trailblazer for women in law and beyond. Her journey from courtroom to bestselling author reflects her resilience and determination to redefine herself amidst intense public scrutiny. On this episode of Worth Knowing, Clark dives into her latest book, *Trial by Ambush*, which examines the 1953 Barbara Graham case—a story that highlights gender bias, media sensationalism, and the notion that all cases are subject to societal, cultural, and political winds. Clark shares how her experiences during the Simpson trial shaped her perspective on societal pressures and the role of women in high-stakes professions. Her reflections on how media, forensic science, and legal practices have evolved over decades offer valuable insights into the intersection of law and culture. This conversation is a compelling exploration of true crime, personal growth, and how Clark’s groundbreaking career continues to inspire a new generation of women to challenge norms and forge their own paths. Marcia Clark is a bestselling author and a criminal lawyer who began her career in law as a criminal defense attorney and went on to become a prosecutor in the L.A. District Attorney's Office in 1981. She spent ten years in the Special Trials Unit, where she handled a number of high-profile cases, including the prosecution of stalker/murderer Robert Bardo, whose conviction for the murder of actress Rebecca Schaeffer resulted in legislation that offered victims better protection from stalkers as well as increased punishment for the offenders. She was lead prosecutor for the O.J. Simpson murder trial. In May of 1997 her book on the Simpson case, "Without a Doubt," was published and reached #1 on the New York Times, Wall St. Journal, Washington Post, Los Angeles Times, and Publishers Weekly bestsellers lists. In February 2016, Clark re-released the book with a new foreword. Resources Sign up for the Worth Knowing LinkedIn Newsletter to stay up to date: https://www.linkedin.com/newsletters/worth-knowing-7236433935503618048/ Follow Bonnie on LinkedIn: https://www.linkedin.com/in/bonnie-habyan/ Go to the Worth Knowing website: https://www.worthknowing.show Check out The Agile Brand Guide website with articles, insights, and Martechipedia, the wiki for marketing technology: https://www.agilebrandguide.com The Agile Brand is produced by Missing Link—a Latina-owned strategy-driven, creatively fueled production co-op. From ideation to creation, they craft human connections through intelligent, engaging and informative content. https://www.missinglink.company…

The Real Estate Market Watch - current events through a real estate lens.

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A shifting economic order. Rising geopolitical risk. Capital on edge. In The Real Estate Market Watch, Dr. Adam Gower, author, academic, and commercial real estate veteran with over 40 years of experience, examines the macroeconomic signals reshaping the real estate investment landscape. This isn’t a show about deal hype or trend-chasing. It’s about what happens when confidence meets correction - and how investors and sponsors can respond with clarity, discipline, and a focus on downside protection. Each episode features candid conversations with economists, multi-cycle real estate professionals, and respected market thinkers. The aim: to make sense of fast-moving events without partisan noise or clickbait headlines - only the real implications for real estate. There’s no fixed release schedule. Episodes are published in response to market conditions, not calendars. If you're trying to navigate uncertainty with a clear-eyed, capital-first approach, this podcast is for you. Newsletter: GowerCrowd.com/subscribe Email: adam@gowercrowd.com Call: 213-761-1000

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The Real Estate Market Watch - current events through a real estate lens.

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The Real Estate Market Watch - current events through a real estate lens.

1
The Illusion of Diversification 52:13

vor 1 day52:13

52:13

Unlocking Private Market Potential: Key Insights from Jim Dowd of North Capital Jim Dowd, CEO of North Capital, brings four decades of experience across the sell-side and buy-side to my discussion with him on a topic top of mind for commercial real estate sponsors and investors: how to navigate a rapidly shifting capital landscape where regulation, liquidity, investor behavior, and macro volatility collide. Here are the key insights from our conversation – designed specifically to you make better, more informed investment decisions in today’s market. 1. Private Markets Are Growing — But Liquidity is the Blind Spot Jim sees a long-term, secular shift from public to private markets. This trend has been driven by: Rising regulatory costs of public capital raises Falling costs and barriers to entry in private placements Broader investor access due to reduced minimums (from $250K+ to $10K–$20K) But here’s the warning: private securities still lack liquidity. Investors participating in these syndicated deals should recognize that they are locked in, sometimes for years, with no clear exit. “It’s like three guys trying to run through a door at the same time – when everyone wants out, they can’t.” Solution: Jim’s firm has built an Alternative Trading System (ATS) to create secondary markets for private securities, a concept CRE sponsors might want to look at. While not yet equivalent to public exchanges, these platforms offer an emerging way to address investor liquidity concerns and could give forward-thinking sponsors a competitive edge. 2. Don’t Be Fooled by the Illusion of Diversification Many sponsors pitch private equity real estate as an uncorrelated asset class, perfect for diversifying out of stocks and bonds. Dowd challenges this narrative. “In a crisis, all risk assets tend to correlate. The illusion of diversification is mostly due to slow re-pricing in private markets.” Takeaway: Sponsors should be transparent with LPs. While real estate is a solid long-term asset, it’s not immune to systemic shocks. Treating it as a diversification tool must come with proper liquidity and risk disclosures. 3. Risk Has Moved From Banks to Private Markets Jim argues that the risk which once destabilized the banking sector during the GFC has now migrated to private markets. The positive spin: these markets are mostly backed by equity, not federally insured deposits, reducing systemic risk. Investors (LPs) should understand that the margin for error in private real estate has shrunk. Mispricing risk in this environment is more likely to catch up with you, especially in a rising rate context. 4. The 10-Year Treasury: The Most Important Metric in CRE Jim highlights the 10-year Treasury yield as the single most important signal CRE sponsors should track. Why? “A 6% cap rate in a 2% Treasury environment is fundamentally different than the same cap rate in a 4.5% Treasury world. That delta blows up every underwriting model.” Cap rate spreads are compressing. And yet, many sponsors haven’t recalibrated assumptions. Jim’s advice: treat macro indicators like interest rates and liquidity conditions as core components of your investment thesis, not just afterthoughts. 5. Investor Behavior Has Changed: Active Risk is Now in Private Markets Jim sees a structural shift in how investors approach risk: Liquid portfolios (ETFs, mutual funds) are increasingly passive and macro-driven. Private investments, including real estate, are now where most investors take active risk. For sponsors, this has profound implications: Investor trust and manager selection matter more than ever. Sponsors must demonstrate operational excellence and a clear, differentiated strategy. Geographic proximity still matters. Many large managers raise capital locally. Relationships built within a 100-mile radius still drive much of the private capital flow. 6. On Crypto and Tokenization: Don’t Confuse the Two North Capital does not allocate to crypto but Jim is bullish on blockchain infrastructure for private markets, especially tokenization. “Blockchain could enable scalable, transparent, and low-cost transactions for private securities – if regulators allow it.” Tokenization may hold long-term promise for CRE sponsors looking to expand liquidity, access global investors, and reduce friction. But the infrastructure and regulatory frameworks are still evolving. 7. Investor Advice: Time in the Market Beats Timing the Market Jim’s advice to investors (including his own son) is simple: don’t try to time the market. Instead: Keep short-term money in treasuries or cash equivalents Deploy long-term capital systematically over a 3–12 month window Accept volatility as the price of long-term outperformance For sponsors, this means messaging matters. Emphasize long-term fundamentals over short-term fear. Help investors contextualize volatility and maintain confidence in your strategy. 8. Watch for These Signals: What Could Change the Outlook Jim tracks two key macro indicators to signal inflection points: The 10-Year Treasury yield (as mentioned above) Capital flows in public markets – a pullback here could foreshadow slower fundraising in private markets. Beyond markets, two external shocks could force sponsors to reevaluate assumptions: A geopolitical crisis (India–Pakistan tensions, Middle East escalation, Ukraine/Russia fallout) A surprise inflation spike, particularly driven by tariffs, energy, or trade policy shocks Investors need to ask: “Can my portfolio withstand a 30–40% drawdown without breaking my long term plans?” If the answer is no, you have too much exposure to risk and should dial back. Final Takeaway for CRE Sponsors Jim Dowd’s insights are a timely reminder that capital formation in private real estate markets is entering a new phase – defined by rising macro uncertainty, evolving liquidity expectations, and heightened investor scrutiny. Sponsors who embrace transparency, align offerings with institutional risk frameworks, and prepare for greater regulatory and market sophistication will be best positioned to lead, and raise, in this new environment. *** In this series, I cut through the noise to examine how shifting macroeconomic forces and rising geopolitical risk are reshaping real estate investing. With insights from economists, academics, and seasoned professionals, this show helps investors respond to market uncertainty with clarity, discipline, and a focus on downside protection. Subscribe to my free newsletter for timely updates, insights, and tools to help you navigate today’s volatile real estate landscape. You’ll get: Straight talk on what happens when confidence meets correction - no hype, no spin, no fluff. Real implications of macro trends for investors and sponsors with actionable guidance. Insights from real estate professionals who’ve been through it all before. Visit GowerCrowd.com/subscribe Email: adam@gowercrowd.com Call: 213-761-1000…

The Real Estate Market Watch - current events through a real estate lens.

1
What the Debt Markets are Telling Us Now 50:27

vor 4 Tagen50:27

50:27

The Pulse of the Debt Markets — with Orest Mandzy, CRE Direct Capital market confidence is cautiously returning, but undercurrents of risk remain. In my wide-ranging conversation with Orest Mandzy, Managing Editor of Commercial Real Estate Direct , we discuss what recent CMBS issuance tells us about liquidity, why delinquency headlines may be misleading, and how sponsors can position themselves amid policy shocks and structural market shifts. Liquidity Is Back — But Driven by Giants CMBS issuance jumped 110% in Q1 2025, totaling nearly $37 billion. While that headline suggests a resurgence of confidence, Orest clarifies that most of that growth comes from SASB (Single Asset, Single Borrower) deals – large trophy assets being financed and securitized by institutional players. These are not indicative of broad-based confidence in middle-market real estate. To gauge true liquidity, he says, focus on conduit deals – pools of smaller $10M–$25M loans originated by banks and institutional lenders and repackaged into +/- $1B bond offerings. Robust conduit activity reflects a healthier market for everyday sponsors. “If you’ve got solid conduit issuance,” says Orest, “that tells you there’s liquidity in the market – not just for trophy deals.” Rising Delinquencies: Real or a Red Herring? Recent headlines warned that CMBS delinquency rates exceeded 7%, the highest since 2021. But Orest has looked deeper into the data and sees it is far from being systemic. A handful of large, troubled multifamily loans, such as the $1.5B Park Merced in San Francisco and a floating-rate New York portfolio, together make up nearly 60% of those delinquencies. The common thread? These loans were made pre-COVID or in 2021 with floating-rate debt and now can’t refinance in today’s rate environment. But they’re outliers, not bellwethers. Fannie and Freddie multifamily delinquencies remain under 1%, and even in CMBS, the average LTVs have been conservative. “Multifamily looks worse than it is. Strip out the outliers and the market’s still performing.” CLOs, Banks, and the Competitive Landscape CMBS is just one lane in the broader lending freeway. Orest distinguishes it from CLOs, which are floating-rate, short-term loans used by debt funds for leverage, and from agencies like Fannie and Freddie, which underwrite more conservatively. In 2024: Agencies originated ~$60B each CMBS did ~$40B CLOs only ~$8B – down sharply from peak years Debt funds relying on CLOs are now facing stiff competition from banks, which are back in the market after a cautious 2023. With banks accounting for 40% of CRE loan volume annually, this shift matters. For sponsors, it means a broader set of options but also a new underwriting reality. Orest notes that while leverage is available, it's on tighter terms: LTVs in the low 60s and debt service coverage ratios near 2.0x are now standard for institutional-quality debt. The Tariff Shock and Bond Market Jitters One of the most important takeaways: macro events like tariffs are now exerting real-time pressure on the capital stack. In early April, CMBS bond spreads spiked from 80bps to 108bps over Treasuries as the market braced for a new round of tariffs. That spread spike pushed borrowing costs up and froze CMBS issuance for nearly 10 days – a signal of how fragile the system remains to policy volatility. Although bond spreads have since tightened, Orest warns that risk repricing is now a function of policy headlines, not just economic fundamentals. “Uncertainty is risk. And when investors sense more of it, they demand more yield. That makes loans more expensive and deal volume drops.” Positive Leverage or No Leverage: Sponsor Guidance Asked what CRE sponsors and investors should be doing in the next 3–12 months, Orest’s answer is clear: Seek positive leverage from Day One – don’t rely on NOI lifts growth to bail you out. Consider no leverage at all if you’re sitting on cash and don’t want to risk default. Underwrite conservatively and turn over every rock. The deal you don’t do may save you. “If you buy with positive leverage, great. If not, maybe don’t borrow at all.” Special Servicing > Delinquencies For investors and borrowers watching for cracks in the market, Orest recommends a lesser-known but more reliable signal: the special servicing rate in CMBS. Loans enter special servicing before they go delinquent, usually triggered by pending lease expirations, tenant loss, or anticipated refinance trouble. This metric has been rising and, unlike delinquencies, tends to stay elevated longer. Sponsors should watch this closely. Local Policy Risk: The Property Tax Squeeze Orest flags an emerging risk with local governments under fiscal stress. Cities like San Francisco, where office values have cratered, still rely on CRE for a large share of tax revenue. If values fall but municipalities resist cutting spending, expect tax rates to rise, eroding asset value further. “Where do cities go when they need money? To the deep pockets. And that’s commercial real estate.” Industrial and Insurance: Still in the Crosshairs While multifamily has absorbed most of the press, Orest highlights risk building in other sectors: Industrial may face headwinds from tariffs disrupting trade flows and warehouse demand. Insurance costs, especially in hurricane-prone areas, continue to rise, sometimes outpacing rent growth. In one example, he cited an apartment property in Tampa where gross revenue rose 50% in five years, but expenses outpaced it, limiting refinance options. Geopolitics, De-Dollarization, and Exorbitant Privilege One of my concerns is about broader macro risks – de-dollarization, loss of U.S. financial credibility, and capital flight from Treasuries. Orest acknowledged these as tail risks but noted they’re not front of mind for most market participants… yet. Still, if foreign buyers ever pull back on U.S. Treasuries, that could cause a spike in long-term rates, forcing CRE valuations down and capital costs up. It’s not imminent, but it’s worth tracking. “If China and Japan stop buying Treasuries, we’ve got a real problem. All bets are off.” Final Thought The key insight from this episode: the market is functioning but only just. Liquidity is back, but it’s conditional. Optimism exists, but it’s fragile. And sponsors must walk a tightrope between opportunity and overextension. Orest’s advice? Borrow smart. Underwrite for today’s risks – not yesterday’s assumptions. And remember: your best defense in uncertain times is positive leverage and deep diligence. *** In this series, I cut through the noise to examine how shifting macroeconomic forces and rising geopolitical risk are reshaping real estate investing. With insights from economists, academics, and seasoned professionals, this show helps investors respond to market uncertainty with clarity, discipline, and a focus on downside protection. Subscribe to my free newsletter for timely updates, insights, and tools to help you navigate today’s volatile real estate landscape. You’ll get: Straight talk on what happens when confidence meets correction - no hype, no spin, no fluff. Real implications of macro trends for investors and sponsors with actionable guidance. Insights from real estate professionals who’ve been through it all before. Visit GowerCrowd.com/subscribe Email: adam@gowercrowd.com Call: 213-761-1000…

The Real Estate Market Watch - current events through a real estate lens.

1
Rates, Risk, and the Return of Discipline 1:01:47

vor 10 Tagen1:01:47

1:01:47

What the Debt Markets Are Telling Us — and Why Sponsors Should Listen Insights from Lisa Pendergast, Executive Director, CREFC In today’s capital markets, where debt is more expensive, less available, and slower to move, understanding how credit flows work has become just as important as understanding your deal. That’s why I sat down with Lisa Pendergast, Executive Director of the Commercial Real Estate Finance Council (CREFC) – a central figure in the $5 trillion CRE debt markets – to ask what the institutions upstream are seeing, and what that means for those of us operating on the front lines of equity, operations, and acquisitions. A Market in Holding Pattern Lisa noted that while Q4 2024 sentiment among debt market participants had turned unexpectedly upbeat, that optimism collapsed in Q1 2025. The cause? Policy uncertainty, rate volatility, and a reemergence of geopolitical and trade risks, most notably the return of tariffs under the Trump administration. The result is hesitation. From the largest bond desks to the average sponsor refinancing a stabilized deal, participants are stuck in wait-and-see mode. "When there's uncertainty," Lisa explained, "things just stop." The Math Has Changed Lisa pointed to a roughly 300-400 basis point gap between legacy loan coupons and current market rates. Even where property fundamentals are stable, that rate delta is making refinancings difficult, especially when higher cap rates have also eroded asset valuations. The implication: more equity must be written into every deal, or the loan won’t pencil. This is the backdrop to rising CMBS delinquencies, particularly in office and, increasingly, multifamily markets where excess supply and rent softening have converged. Lenders aren’t panicking, but they are requiring more diligence, more equity, and more confidence in borrowers. Why Sponsors Should Watch the CMBS Market For sponsors who don't interact directly with capital markets, Lisa offered a critical point: trends in CMBS spreads and issuance are leading indicators. When investors demand higher spreads (i.e., more compensation for risk), lenders raise rates, reduce proceeds, or pull back altogether. She explained the distinction between conduit deals (pools of smaller loans) and SASB structures (large, single-sponsor or single-asset bonds). The conduit market, a lifeline for mid-sized deals, has slowed dramatically. That signals tightening liquidity for smaller sponsors or niche asset classes. Meanwhile, large SASB deals continue but only with strong assets, strong borrowers, and deep-pocketed equity partners. The Regulatory Horizon Lisa also addressed deregulation under Trump 2.0. While she hasn't seen core rules like Dodd-Frank or the Volcker Rule reversed outright, she’s watching how new leadership at key agencies may soften enforcement. Dodd-Frank was enacted after the 2008 financial crisis to rein in excessive risk-taking by lenders and increase transparency in financial markets. The Volcker Rule, a key provision, restricts banks from making speculative bets with their own capital, especially in risky vehicles like real estate-backed securities. For sponsors, the concern isn't just about policy in Washington, it’s about what happens to lending standards and capital stability when those policies shift. Lisa’s concern is practical: regulatory whiplash, rules swinging left, then right, then back again, as we’ve seen with tariffs, undermines confidence and can freeze the flow of capital. When lenders aren’t sure what rules they’ll be operating under next quarter, they hesitate and that caution trickles down to your loan terms. Sponsors should pay attention here. When policy becomes unpredictable, capital becomes cautious and that shows up in the terms you’re offered, or whether your deal gets financed at all. Final Takeaway: The Debt Market Has Grown Up Lisa struck a cautiously optimistic tone. Compared to the run-up to the 2008 crash, today’s market is more disciplined. Underwriting remains sound, even in a difficult environment. But that doesn’t mean lenders will stretch. If you’re a sponsor today, her message is clear: capital is out there—but it’s selective, it’s expensive, and it’s scrutinizing every deal. You need to understand the market forces upstream to be able to compete downstream. *** In this series, I cut through the noise to examine how shifting macroeconomic forces and rising geopolitical risk are reshaping real estate investing. With insights from economists, academics, and seasoned professionals, this show helps investors respond to market uncertainty with clarity, discipline, and a focus on downside protection. Subscribe to my free newsletter for timely updates, insights, and tools to help you navigate today’s volatile real estate landscape. You’ll get: Straight talk on what happens when confidence meets correction - no hype, no spin, no fluff. Real implications of macro trends for investors and sponsors with actionable guidance. Insights from real estate professionals who’ve been through it all before. Visit GowerCrowd.com/subscribe Email: adam@gowercrowd.com Call: 213-761-1000…

The Real Estate Market Watch - current events through a real estate lens.

1
The Fed, the Fallout, and CRE 43:52

vor 24 Tagen43:52

43:52

Debt-Driven Reality: Understanding CRE’s Structural Fragility Cracks Beneath the Surface In this episode of The Real Estate Market Watch , I sit down with Jon Winick, CEO of Clark Street Capital, to explore the increasingly fragile foundation of the commercial real estate (CRE) market. Winick draws on decades of experience in loan portfolio sales, banking, CMBS investing, and student housing to deliver a sobering, detail-rich assessment of what’s coming next — and what’s already hiding in plain sight. The Fed, Interest Rates, and the “Nuclear Option” Trump vs. Powell: Market Implications Winick opens with a sharp critique of political interference in Federal Reserve policy. While the idea of firing Fed Chair Jerome Powell may feel remote, he warns that even sustained political pressure has consequences. Removing Powell — the so-called "nuclear option" — would spark chaos in capital markets, undermining global confidence in the U.S. dollar and Treasury markets. “You cannot find an industry in which debt matters more than commercial real estate,” Winick says. A destabilized bond market affects CRE indirectly but profoundly by tightening liquidity and depressing investor confidence. CRE’s Dependency on Debt: Liquidity as Lifeblood Why CRE Suffers When Capital Tightens With rates elevated and uncertainty rising, Winick highlights the outsized role debt plays in CRE. Unlike most industries, capital structure is everything in real estate. Higher interest rates are more than a cost issue—they erode the viability of deals outright. His analogy lands hard: “Low rates are like tequila on a first date. High rates are like a glass of warm milk.” Banking Behavior: The Art of Delay Defaults, Loan Maturities, and Creative Accounting Despite rising delinquencies in CMBS, bank-reported CRE loan delinquencies remain surprisingly low. Why? Banks, Winick argues, are benefiting from regulatory changes that let them defer the recognition of problem loans. “The delinquencies that you're seeing in CMBS and bank loans will inevitably converge. Banks have been able to use some new rules to hide problem loans. And eventually that [runway] runs out.” he says. Bank defaults may not be catastrophic, but their opacity clouds the picture for investors trying to assess real risk. Creative Destruction Denied Why Bailouts Delay the Inevitable Winick argues the post-COVID economy is still “wrapped up by actual or indirect fraud.” From subsidized mortgages to suspended student loan collections, unsustainable federal programs have kept weak assets and businesses afloat. He makes a provocative case for embracing creative destruction. “We’ve basically decided as a society that we won’t let businesses fail… but that’s ultimately bad economics.” Policy, Regulation, and the Supply-Demand Trap Deregulation and its Unintended Consequences Dodd-Frank’s unintended effect was to choke off consumer credit, particularly in regions with few lenders. Winick compares Puerto Rico, with just three banks, to Iowa, with the same size population as Puerto Rico, with 246. The result? Higher interest rates, limited options, and an underfinanced economy. He calls for “smart, effective regulation,” warning that over-regulation concentrates power while under-regulation invites asset bubbles. The Signals to Watch Now What CRE Investors Should Be Monitoring Winick identifies several canaries in the coal mine for CRE investors: Widening CMBS credit spreads: These are leading indicators of borrowing cost pressures. Corporate bankruptcies and retail closures: Especially among large tenants like Walgreens or government departments exiting leases. Shifts in political winds: Regulatory reversals could radically alter CRE's operating environment. Strategy: What Should CRE Investors Be Doing? Be Patient, but Be Realistic For investors sitting on cash, Winick’s advice is pragmatic: “Be patient… [but] waiting for a home run often means you miss out on a lot of great opportunities.” He urges caution and downside awareness in every negotiation, pointing out that real movement in the market won’t occur until lenders are forced to act or borrowers are out of options. Final Thought: The Bond Vigilantes Will Win A System Bound by Market Forces Winick closes with a sharp reminder that the bond market, not politicians, sets the true limits: “The bond vigilantes always get their way.” In a world dependent on debt, real estate investors should watch not just interest rates — but who controls the levers behind them. *** In this series, I cut through the noise to examine how shifting macroeconomic forces and rising geopolitical risk are reshaping real estate investing. With insights from economists, academics, and seasoned professionals, this show helps investors respond to market uncertainty with clarity, discipline, and a focus on downside protection. Subscribe to my free newsletter for timely updates, insights, and tools to help you navigate today’s volatile real estate landscape. You’ll get: Straight talk on what happens when confidence meets correction - no hype, no spin, no fluff. Real implications of macro trends for investors and sponsors with actionable guidance. Insights from real estate professionals who’ve been through it all before. Visit GowerCrowd.com/subscribe Email: adam@gowercrowd.com Call: 213-761-1000…

The Real Estate Market Watch - current events through a real estate lens.

1
The Truth About Capital Raising 30:08

vor 25 Tagen30:08

30:08

When you listen in to this week's podcast/YouTube show guest, Elijah Iung, you’ll love hearing about his journey from farmhand to capital raiser. Before he was investing in multifamily deals, he was knee-deep in… well, let’s just say a much messier kind of asset management. But that dirty work paid off. Elijah built a multi-seven-figure business in cattle waste management, which set the stage for his transition into farmland investing and, eventually, multifamily syndication. His journey from tractor-driving farmhand to capital allocator is as unconventional as it is insightful. Betting Big on Multifamily After selling his waste management business, Elijah discovered that much of his wealth was actually growing through his farmland investments, not from his business itself. That realization led him to multifamily real estate, where he quickly learned the ropes by investing as an LP, joining masterminds, and building key sponsor relationships. Raising His First Million Elijah’s first capital raise wasn’t a walk in the park. Tasked with raising $1M for a $39M multifamily deal in Savannah, GA, he hustled hard, digging through his contacts, cold calling, and leveraging LinkedIn to bring investors into the fold. As a co-GP with Lake City Equity, he put up his own capital, structured investor incentives, and navigated the complexities of syndication. Lessons from the Frontlines Raising capital might sound like a simple process; build an email list, send a few messages, and watch the money roll in. The reality? It’s anything but that and Elijah quickly learned that trust is everything – and that trust isn’t built overnight. It takes time, persistence, and a thick skin to handle the inevitable rejections. His first raise was a grind. Cold calls were brutal, follow-ups felt endless, and convincing investors to part with six figures took more than just a good pitch; it required credibility and relationships. Then came the complexities of syndication: structuring equity splits, managing fees, and balancing the interests of both sponsors and investors. Despite the hurdles, Elijah delivered. He raised the full $1M, became the largest LP in his own deal, and walked away with something even more valuable – experience. Now, he’s doubling down on building his investor network through LinkedIn, masterminds, and in-person connections, ensuring that his next raise won’t be nearly as uphill. *** This episode is a real, unfiltered look at what it takes to break into capital raising, the myths that get shattered along the way, and the strategies that actually work. If you’ve ever thought about raising money for real estate deals or just want to hear how a former farmhand turned syndicator made his first million-dollar raise, you’ll want to hit play on this one. *** Explore the world of real estate capital allocators—a fresh approach to financing that’s reshaping the industry. In this series, I talk with allocators, investors, sponsors, and service providers to give you an inside look at this fast-growing space. PLUS, subscribe to my free newsletter for real estate investors and gain access to: * Introductions to sponsors, allocators, and investment opportunities. * Insights drawn from my 30+ years of experience in real estate investing. * Hacks and tactics for raising capital to help you scale your real estate portfolio. Visit GowerCrowd.com/subscribe…

The Real Estate Market Watch - current events through a real estate lens.

1
Think You’re Diversified? Think Again! 50:22

vor 26 Tagen50:22

50:22

Please welcome my guest today, dentist Josh Cochran, who didn’t just build the largest general dental group in the Inland Northwest, he built a real estate empire while he was at it. After selling a stake in his thriving dental practice, he set his sights on commercial real estate, starting with medical retail development before getting involved in ground-up multifamily projects worth over $125 million. The Accidental Developer Josh has an interesting background in that he didn’t just lease space for his dental offices, he built them and, in the process, he discovered he had a knack for development. What started as a necessity quickly became a passion, leading him to acquire land, structure deals, and transform raw dirt into ground up developments. Scaling Up to Multifamily Retail development had its challenges, but Josh knew where the market was heading. He pivoted to multifamily, securing land, entitling projects, and working with institutional capital partners to develop over 450 units across five projects. Along the way, he raised millions from investors, balancing capital allocation with active development. Raising Millions While Protecting Investors With a network of high-net-worth investors, many from his dental background, Josh built a capital-raising system. He is hyper-focused on due diligence, personally vetting deals, sponsors, and market fundamentals before committing capital. His slow and steady approach has helped him safeguard investors from the risky, overleveraged deals that have sunk others. Lessons from the Trenches Josh shares the hard-earned lessons from his transition, including: Why development takes longer than you think—but is worth the wait The biggest fundraising mistakes investors make (and how to avoid them) How he structures deals to align incentives and mitigate risk The power of relationships in CRE and why “going deep” is better than broad diversification. *** From running a successful dental practice to structuring nine-figure real estate deals, Josh’s journey proves that the right mindset and strategic partnerships can open the door to CRE success. If you’re looking to break into development, master capital raising, or scale a real estate business, this episode is full of real-world lessons and advice. *** Explore the world of real estate capital allocators—a fresh approach to financing that’s reshaping the industry. In this series, I talk with allocators, investors, sponsors, and service providers to give you an inside look at this fast-growing space. PLUS, subscribe to my free newsletter for real estate investors and gain access to: * Introductions to sponsors, allocators, and investment opportunities. * Insights drawn from my 30+ years of experience in real estate investing. * Hacks and tactics for raising capital to help you scale your real estate portfolio. Visit GowerCrowd.com/subscribe…

The Real Estate Market Watch - current events through a real estate lens.

1
Why Most Capital Raisers Fail (And How to Succeed) 52:21

vor 27 Tagen52:21

52:21

Meet capital allocator, Flint Jamison, Vestus Capital, who took an unconventional route into real estate transitioning from aerospace engineering to structuring multimillion-dollar investment funds. After spending years modifying aircraft, he turned his analytical mind toward real estate, quickly carving out a niche as a capital allocator and fund-of-funds manager. Through Vestus Capital, Flint has raised millions in investor capital, deploying it across diversified real estate assets, including multifamily, medical office buildings, and specialized fund structures. He’s helped investors access opportunities while working to ensure compliance with SEC regulations, something often misunderstood by others. Decoding the Fund of Funds Model Flint explains how he structures his fund-of-funds investments, allowing his investors to access preferential terms. With a $30M portfolio that spans multiple markets, he’s seen firsthand how to negotiate with operators, structure fee agreements, and optimize capital allocation to maximize returns. Navigating a Shifting Market Raising capital today isn’t the same as it was a few years ago. Flint is forthright about the hardest lessons learned, including why “if you build it, they won’t necessarily come.” We talk about how his deals have performed in the face of rising interest rates and market fluctuations, as well as the creative financing strategies he’s deploying to future-proof investments. How to Stand Out in a Crowded Investor Market With countless syndicators and allocators chasing the same investors, how do you differentiate yourself? Flint shares why most capital raisers fail, the biggest mistakes they make, and the LinkedIn strategy that’s been his most powerful tool for attracting accredited investors. Spoiler: It’s not about templates or AI-generated pitches; it’s about speaking the right language to the right audience. **** Flint’s insights are a must-hear for anyone navigating the complex world of real estate capital allocation. If you want to crack the fund of funds model or scale your capital-raising game, this episode is packed with real-world lessons, actionable strategies, and no-BS advice you won’t hear anywhere else. You're going to rethink everything you know about raising capital! *** Explore the world of real estate capital allocators—a fresh approach to financing that’s reshaping the industry. In this series, I talk with allocators, investors, sponsors, and service providers to give you an inside look at this fast-growing space. PLUS, subscribe to my free newsletter for real estate investors and gain access to: * Introductions to sponsors, allocators, and investment opportunities. * Insights drawn from my 30+ years of experience in real estate investing. * Hacks and tactics for raising capital to help you scale your real estate portfolio. Visit GowerCrowd.com/subscribe…

The Real Estate Market Watch - current events through a real estate lens.

1
Stop! Watch This Before Investing in Real Estate 43:40

vor 28 Tagen43:40

43:40

Today on the podcast, we unravel the complexities of passive investing with Kurt Novak, an experienced investor who’s navigated nearly 50 syndications and uncovered some surprising truths on his journey. When Kurt sold his entire real estate portfolio - rental properties, a self-storage facility, and a thriving brokerage - he thought he was settling into early retirement. Instead, he found himself deep in the world of passive investing, syndications, and allocators. What started with crowdfunding platforms like CrowdStreet quickly expanded into direct investments, allocator-led funds, and a portfolio spanning nearly 50 syndications. But along the way, he discovered something surprising - many passive investors (including himself at first) had no idea what an allocator really is… or how they make money. Syndications, Allocators, and the Fine Print Kurt breaks down the differences between investing directly with sponsors and going through allocators (a.k.a. fund managers, middlemen, capital raisers - pick your term). Spoiler alert: it’s not always as transparent as you’d hope. In fact, many allocators present deals in a way that makes them look like sponsors, leaving investors unaware of the extra layer of fees, the loss of direct ownership, and who’s really calling the shots. Where’s the Real Money? With nearly five years in the passive investing game, Kurt has seen it all - stellar returns, underperforming projections, and even outright fraud. He shares which asset classes have been the biggest winners and which ones have fallen short. Plus, he reveals what happens when an allocator steps up and fights for investors after a deal goes sideways. What Every Passive Investor Needs to Know This episode is a masterclass in cutting through the noise, avoiding common pitfalls, and making smarter investment decisions. Whether you’re a seasoned investor or just dipping your toes into the syndication business, Kurt’s insights will challenge the way you think about allocators, fund structures, and who’s really working in your best interest. *** If you’ve ever wondered where your money actually goes in a syndicated deal—how the fees break down, who’s making the decisions, and whether you’re really getting the best deal possible—this episode is a must-listen. Kurt pulls back the curtain on the hidden layers of passive investing, helping you understand what to look for, what to avoid, and how to make sure your money is truly working for you. *** Explore the world of real estate capital allocators—a fresh approach to financing that’s reshaping the industry. In this series, I talk with allocators, investors, sponsors, and service providers to give you an inside look at this fast-growing space. PLUS, subscribe to my free newsletter for real estate investors and gain access to: * Introductions to sponsors, allocators, and investment opportunities. * Insights drawn from my 30+ years of experience in real estate investing. * Hacks and tactics for raising capital to help you scale your real estate portfolio. Visit GowerCrowd.com/subscribe…

The Real Estate Market Watch - current events through a real estate lens.

1
A Smarter Way to Invest in CRE 49:35

vor 5 weeks49:35

49:35

When you think of a capital allocator, "former physical therapist" probably isn’t the first thing that comes to mind but Kent Leach isn’t your typical investor. From flipping houses to launching a customizable fund that raised nearly $2M in its first year, Kent’s journey into commercial real estate is as unconventional as it is impressive. In this episode, Kent discusses how he transitioned from hands-on rehab work to structuring an innovative investment model for his investors. His Smart Flex Fund offers an alternative to the traditional blind-pool structure, allowing investors to handpick deals across multiple asset classes, including affordable housing, self-storage, and beyond. Mastering the Fund of Funds Model Kent discusses how he leverages his network, industry insights, and due diligence practices to negotiate preferential terms with sponsors. Avoiding the Multifamily Hype Trap While many investors were all-in on multifamily over the past decade, Kent’s diversification strategy helped him avoid the turbulence that’s hitting the market today. His approach? Uncorrelated asset classes, disciplined underwriting, and a commitment to transparency. The Future of Real Estate Investing With sponsors facing tighter lending conditions and rising rates shaking up the industry, Kent shares his predictions for where capital allocators should be focusing next. Plus, he reveals the biggest misconceptions about fund-of-funds investing and how the right allocator can enhance returns, not dilute them. *** If you’ve ever wondered how to invest with a capital allocator, this episode is your backstage pass to learning more. *** Explore the world of real estate capital allocators—a fresh approach to financing that’s reshaping the industry. In this series, I talk with allocators, investors, sponsors, and service providers to give you an inside look at this fast-growing space. PLUS, subscribe to my free newsletter for real estate investors and gain access to: * Introductions to sponsors, allocators, and investment opportunities. * Insights drawn from my 30+ years of experience in real estate investing. * Hacks and tactics for raising capital to help you scale your real estate portfolio. Visit GowerCrowd.com/subscribe…

The Real Estate Market Watch - current events through a real estate lens.

1
The Fastest Way to Build an Investor Network 54:32

vor 6 weeks54:32

54:32

Randy Smith, my guest this week, didn’t start out in real estate—he was a high-performing sales executive in the corporate world. But after seeing the potential of passive investing, he made pivoted, leaving behind the W-2 grind to become a full-time capital allocator. Since then, Randy has raised over $13 million, partnering with sponsors to help investors secure better terms and stronger returns. The Allocator Advantage: Negotiating Better Terms for Investors Unlike a typical LP, Randy doesn’t just invest, he uses his position as an allocator to structure deals that benefit his investors. By pooling capital and leveraging his network, he’s able to negotiate better preferred returns, improved splits, and reduced fees - terms that individual investors couldn’t get on their own. In our conversation, you’ll hear how he evaluates opportunities, why he prioritizes fixed over floating-rate debt, and the strategic moves he’s making to protect investor capital in an uncertain market. Lessons from a Shifting Market Starting out in real estate right before the market turned has given Randy a crash course (if you’ll forgive the pun) in what works and what doesn’t. With some deals pausing distributions and others facing capital calls, he’s had to navigate a rapidly changing landscape while keeping investor returns top of mind. We talk about what he’s learned from deals that have struggled, why he’s more selective than ever about the sponsors he works with, and the red flags he watches for when evaluating a new opportunity. Building a High-Performing Investor Network Randy shares his approach to building an investor base, why he focuses on high-income sales professionals, and how he’s leveraged LinkedIn, masterminds, and podcast guest appearances to grow his network. He also talks about the common mistakes new allocators make and how he’s refining his outreach strategy to attract larger investors who are ready to deploy capital. *** If you want to get smarter about investing, learn how allocators negotiate better deals, or just hear some real talk about what’s working in today’s market, make sure to check out this episode. *** Explore the world of real estate capital allocators—a fresh approach to financing that’s reshaping the industry. In this series, I talk with allocators, investors, sponsors, and service providers to give you an inside look at this fast-growing space. PLUS, subscribe to my free newsletter for real estate investors and gain access to: * Introductions to sponsors, allocators, and investment opportunities. * Insights drawn from my 30+ years of experience in real estate investing. * Hacks and tactics for raising capital to help you scale your real estate portfolio. Visit GowerCrowd.com/subscribe…

The Real Estate Market Watch - current events through a real estate lens.

1
SEC Rules You Must Know 48:20

vor 7 weeks48:20

48:20

My guest this week, Franklin Spees, has worn just about every hat in the real estate game - lawyer, city planner, broker, property manager, investor, and now, a capital allocator. His path into commercial real estate syndications started with managing properties, evolved into structuring deals, and ultimately landed him in the allocator space, where he’s raised and deployed over $30 million into real estate deals across the country. The Capital Allocator Model – Friend or Foe? If you’ve ever wondered how the co-GP model really works (or why it’s under increasing scrutiny from regulators), Franklin breaks it all down. He explains the compliance challenges capital allocators face, why fund-to-fund structures are becoming the preferred model for institutional and retail investors alike, and the biggest mistakes new allocators make when structuring deals. With firsthand experience in fundraising, due diligence, and asset management, Franklin reveals the key metrics he looks for in a sponsor, how he negotiates better splits, and why transparency is crucial - especially in uncertain markets like today’s. Building an Investor Network Without Cold Calls Unlike many in the industry, Franklin didn’t build his investor base through paid ads or cold outreach. Instead, he leveraged his property management company and legal clients, many of whom were already real estate investors looking for smarter opportunities. He shares how anyone with an existing network can turn relationships into capital without the need for expensive marketing. Lessons from Market Cycles and Long-Term Investing Franklin’s seen the market at its peak and in its downturns, and he’s learned that patience and communication are everything. He discusses how investor expectations have shifted, why some deals are extending their hold periods, and how sponsors with strong operational teams will weather the storm. *** If you’re looking to understand the inner workings of capital allocation, this episode is a must-watch. Franklin’s insights could change the way you think about raising and deploying capital. *** Explore the world of real estate capital allocators—a fresh approach to financing that’s reshaping the industry. In this series, I talk with allocators, investors, sponsors, and service providers to give you an inside look at this fast-growing space. PLUS, subscribe to my free newsletter for real estate investors and gain access to: * Introductions to sponsors, allocators, and investment opportunities. * Insights drawn from my 30+ years of experience in real estate investing. * Hacks and tactics for raising capital to help you scale your real estate portfolio. Visit GowerCrowd.com/subscribe…

The Real Estate Market Watch - current events through a real estate lens.

1
From Medical Devices to $2B in Real Estate 47:34

vor 8 weeks47:34

47:34

What happens when a former medical device professional takes his precision, risk management skills, and analytical mindset into the world of real estate investing? You get Chris Larsen, the founder of Next-Level Income and this week’s podcast/YouTube show guest, who has placed $120M+ in equity across $2B in acquisitions as a capital allocator. Mastering the Capital Allocator Model Chris started as an active investor, acquiring multifamily, self-storage, and mobile home parks directly. As his network and experience grew, so did his role, evolving into a capital allocator who partners with sponsors to raise capital for them. By negotiating preferential terms and structuring his investments through funds, he helps investors access deals with higher returns than they would be able to investing directly with the sponsor. Navigating Risk, Reward, and Market Challenges With interest rate volatility and shifting market conditions, Chris has seen both wins and losses. Some deals have outperformed, while others have faced capital calls and suspended distributions - a reality many sponsors are dealing with today. His approach? Absolute transparency and strong relationships, the same principles that guided his career in the world of medical devices. The Power of Investor Relationships Chris has built a 300+ investor network largely through referrals, podcasts, and his book funnel. His ability to bridge his expertise from one high-risk industry to another makes his insights invaluable for anyone looking to navigate real estate investing like a seasoned pro. *** Explore the world of real estate capital allocators—a fresh approach to financing that’s reshaping the industry. In this series, I talk with allocators, investors, sponsors, and service providers to give you an inside look at this fast-growing space. PLUS, subscribe to my free newsletter for real estate investors and gain access to: * Introductions to sponsors, allocators, and investment opportunities. * Insights drawn from my 30+ years of experience in real estate investing. * Hacks and tactics for raising capital to help you scale your real estate portfolio. Visit GowerCrowd.com/subscribe…

The Real Estate Market Watch - current events through a real estate lens.

1
The #1 Mistake Investors Make in CRE 36:27

vor 9 weeks36:27

36:27

My guest this week, Chris Borden, thought he was heading for a quiet retirement after stepping down as CEO of a multi-billion-dollar grocery chain. Instead, he found himself on a fast track to becoming a real estate investor and capital allocator. What started as a few rental properties evolved into capital deployment, including a $5M+ debt fund and co-GP positions across thousands of multifamily units. Through Rise Capital Investments, he’s working with investors to generate steady returns while navigating the complexities of debt and equity investments. Building a Debt-Focused Investment Model Chris structured his fund to prioritize debt, specifically first-lien lending. His looks to provide a steady income stream for investors with reduced volatility. By carefully selecting borrowers and structuring loans with conservative loan-to-value ratios, he’s built a resilient portfolio that has successfully been generating consistent returns. The Art of Capital Allocation Chris has also established partnerships with sponsors he has co-GP’d with on multifamily and commercial real estate opportunities, leveraging his investment club model that allows investors to pool capital and participate in opportunities he sources. Lessons from a Shifting Market The past year has been a test for many investors, and Chris’s experience is no exception. With several equity deals pausing distributions due to rising interest rates, he’s seen firsthand the importance of working with strong sponsors, maintaining liquidity, and ensuring portfolio diversification. His biggest takeaway? Relationships matter more than ever - especially when times get tough. Mastering the Investor Game So where does Chris find investors? Forget paid advertising on social media, Chris’s most successful networking for investors come from LinkedIn, local real estate meetups, and other in-person groups. *** Chris’s journey is a masterclass in adapting to market conditions, mitigating risk, and making real estate work on your own terms. If you want to learn how to navigate debt, equity, and capital allocation like a pro, this is an episode you won’t want to miss. *** Explore the world of real estate capital allocators—a fresh approach to financing that’s reshaping the industry. In this series, I talk with allocators, investors, sponsors, and service providers to give you an inside look at this fast-growing space. PLUS, subscribe to my free newsletter for real estate investors and gain access to: * Introductions to sponsors, allocators, and investment opportunities. * Insights drawn from my 30+ years of experience in real estate investing. * Hacks and tactics for raising capital to help you scale your real estate portfolio. Visit GowerCrowd.com/subscribe…

The Real Estate Market Watch - current events through a real estate lens.

1
When Capital Raisers Get It Right 44:36

vor 10 weeks44:36

44:36

Capital Raising and Deal Structure Amanda Larson, founder of AMA X Equity, has raised roughly $2 million in investor capital since going full-time as a real estate capital allocator a little over a year ago. She specializes in multifamily syndications, sourcing deals, conducting due diligence, and structuring investments. In one of her largest transactions, the $31M acquisition of The Darby at Steeplechase, she played a key role in securing the deal, structuring the business plan, and signing on the loan. The total equity raise was just under $20M, with multiple sponsors contributing capital. Role in Deal Execution Amanda’s process starts with sourcing deals through broker relationships, conducting due diligence, underwriting, and assembling a sponsor team. In the case of The Darby, she worked with Disrupt Equity, a Houston-based sponsor group, to close the acquisition. Although Disrupt Equity led the project, Amanda was part of the GP team, securing a share of the 20% GP split rather than participating in a fund-of-funds model where capital allocators typically take a cut of investor returns. Underwriting Rigor and Risk Management A key differentiator in Amanda’s approach is her engineering mindset, which she applies to underwriting. Unlike some capital allocators who simply rebrand and distribute sponsor pitch decks, she conducts independent underwriting and due diligence, verifying financial assumptions before bringing investors into a deal. She has learned to be particularly cautious about floating-rate debt, having seen firsthand how misplaced confidence in interest rate stability led to market turbulence. Raising Capital and Investor Relations Amanda primarily sources investors through LinkedIn and business networking events, leveraging her background in the oil and gas industry to connect with engineers and professionals seeking diversification. While she initially focused on operations and underwriting, she has recognized the importance of marketing and investor education, adapting her LinkedIn content to be more personal and engaging. Lessons Learned and Market Outlook Her biggest lesson? Don’t blindly trust the smartest person in the room. She observed many seasoned operators confidently taking on floating-rate debt, despite clear risks, because the consensus among experienced sponsors was that rates would stay low. Additionally, she remains skeptical about the fund-of-funds model, noting that while it provides flexibility, it may be flooding the market with underqualified capital allocators who lack real estate expertise. *** Explore the world of real estate capital allocators—a fresh approach to financing that’s reshaping the industry. In this series, I talk with allocators, investors, sponsors, and service providers to give you an inside look at this fast-growing space. PLUS, subscribe to my free newsletter for real estate investors and gain access to: * Introductions to sponsors, allocators, and investment opportunities. * Insights drawn from my 30+ years of experience in real estate investing. * Hacks and tactics for raising capital to help you scale your real estate portfolio. Visit GowerCrowd.com/subscribe…

The Real Estate Market Watch - current events through a real estate lens.

1
$20 Million Raised on LinkedIn! 43:16

vor 11 weeks43:16

43:16

Capital Raised and Deal Structure Dr. Raj Venkatramani, a pediatric oncologist turned real estate capital allocator, has raised approximately $20 million from investors, 95% of whom are doctors, since launching REIDOC Capital in 2021. His typical deal size ranges from $10 million to $30 million, and on average he raises $2 million per deal. His primary focus is on multifamily properties of at least 100 units, targeting Class A and B assets and new construction projects, rather than Class C properties, following hard-earned lessons from the market peak in 2021. Leveraging Group Capital for Better Returns Dr. Raj secures better economics for his investors by leveraging group capital. While a typical syndication might offer a 15% IRR with a 6-7% preferred return, Raj pools investors together to negotiate, for example, an 80/20 split (instead of 70/30) and an 8% preferred return, effectively increasing investor returns without requiring larger individual commitments. Underwriting and Market Lessons His underwriting philosophy is focused on analyzing sponsor assumptions, particularly around rent growth projections, occupancy expectations, expense growth, and debt structure. He talks about how bad assumptions can make a weak deal look good, citing an early investment in a Class C Florida asset where insurance costs doubled (from $196K to $400K in one year) and variable rate debt wiped out NOI. Transition to Ground-Up Development Raj expanded the kinds of deal he invests in from value-add to ground-up development and now partners on new construction projects in Sioux Falls, South Dakota, a market he believes is undervalued. His due diligence process before partnering with a sponsor involves a multi-year vetting process, meeting them at conferences, reviewing past deals, and even visiting completed projects before committing capital. LinkedIn as a Primary Investor Source Perhaps most surprising is how he sources capital: 90% of his investors have never met him in person, and nearly all were acquired through LinkedIn and referrals. His LinkedIn strategy? Post consistently for two years, even when people don’t engage, until they reach out ready to invest. Key Takeaway: Trust but Verify His biggest lesson? Trust but verify—real estate is not medicine, where all parties have the same goal. Misalignment of incentives is real, and capital allocators must be rigorous in due diligence to avoid costly mistakes. *** Explore the world of real estate capital allocators—a fresh approach to financing that’s reshaping the industry. In this series, I talk with allocators, investors, sponsors, and service providers to give you an inside look at this fast-growing space. PLUS, subscribe to my free newsletter for real estate investors and gain access to: * Introductions to sponsors, allocators, and investment opportunities. * Insights drawn from my 30+ years of experience in real estate investing. * Hacks and tactics for raising capital to help you scale your real estate portfolio. Visit GowerCrowd.com/subscribe…

The Real Estate Market Watch - current events through a real estate lens.

1
From Aerospace to Real Estate: An Allocator's Tale 42:34

vor 12 weeks42:34

42:34

The growing complexity of US real estate investment has led to the emergence of a new class of capital allocators, yet many struggle to differentiate themselves in an increasingly crowded marketplace, as a candid conversation in my latest podcast reveals. Philippe Schulligen, co-founder of Boost Capital Group, which has raised $2m since 2022, exemplifies both the opportunities and challenges facing new entrants in the space. A former aerospace engineer, Philippe’s firm positions itself as an intermediary between sophisticated property operators and retail investors, offering what he terms ‘wholesale access to institutional-quality deals.’ Business Model and Deal Structure The business model is straightforward: Boost aggregates smaller investment checks into larger commitments, negotiating preferential terms with sponsors. A typical arrangement might see the sponsor offering a 90-10 profit split versus the standard 80-20, with Boost taking a portion of the enhanced returns while still delivering better terms to its investors than they could access directly. Structural Challenges Yet the conversation revealed deeper structural challenges facing the sector. Despite Philippe’s technical background in risk management and complex systems, potentially valuable skills in real estate investment, his firm's marketing emphasizes generic wealth-building messaging that has become ubiquitous in the space. Investment Criteria The firm maintains strict sponsor requirements: Minimum seven-year operational track record Portfolio of at least 2,000 units Three full-cycle deals completed Vertical integration preferred Philippe says that these standards, developed during the post-2018 property boom, may need reassessment given current market conditions. Capital Formation Hurdles "It's hard to raise money," Philippe acknowledged, highlighting the persistent challenge of attracting investment despite examining some 60 potential deals in 2024, of which only four were deemed suitable for investors. Industry-Wide Implications The discussion highlighted a broader industry challenge: as real estate investment becomes more accessible to retail investors, capital allocators must work harder to distinguish themselves. Many default to similar marketing language about passive income and wealth building, overlooking their unique value propositions. This democratization of real estate investment, while opening new opportunities for retail investors, also raises questions about how effectively these newer intermediaries can compete with established players in an increasingly sophisticated market. The conversation suggests that success in this evolving landscape may depend less on standard industry practices and more on allocators' ability to leverage their distinctive expertise and backgrounds—a lesson that could prove particularly relevant as the sector navigates current market uncertainties. *** Explore the world of real estate capital allocators—a fresh approach to financing that’s reshaping the industry. In this series, I talk with allocators, investors, sponsors, and service providers to give you an inside look at this fast-growing space. PLUS, subscribe to my free newsletter for real estate investors and gain access to: * Introductions to sponsors, allocators, and investment opportunities. * Insights drawn from my 30+ years of experience in real estate investing. * Hacks and tactics for raising capital to help you scale your real estate portfolio. Visit GowerCrowd.com/subscribe…

The Real Estate Market Watch - current events through a real estate lens.

1
From Wakeboarding to Real Estate Success 46:19

vor 13 weeks46:19

46:19

What does wakeboarding have in common with real estate? My guest this week, Austin Hair, is an expert at connecting the dots between these two careers. In today’s show, he discusses how he transitioned from being a professional wakeboarder to becoming the Managing Partner at Leaders Real Estate, where he raises capital for his own healthcare real estate acquisitions. Austin is also exploring the ‘capital allocator’ model as the next stage in his career and shares insights he’s gained about that approach. Deal Structure Having attended several real estate and business masterminds, Austin has identified three key roles in a fund: the fund manager (largely administrative), the ‘expert investor’ (more commonly known as the sponsor or operator), and the capital raiser (the role Austin plays). Austin’s approach is to seek opportunities where these roles split the General Partner economics equally, one-third each, or at least where the capital raiser earns a pro-rata share of the GP economics based on the proportion of equity raised relative to the project’s total equity requirement. Target Deal Criteria Austin prefers deals in the $14-$15 million acquisition range that require approximately $5 million in equity and is comfortable raising $500,000-$1 million per deal. He seeks sponsors with a minimum of 5+ years and 5+ deals of experience, avoids first-time sponsors aiming to raise large funds (up to $100 million), and is skeptical of sponsors projecting unrealistic IRRs (70%+) preferring, instead, deals with IRRs of 15-18%, which he considers more realistic. Austin is particularly drawn to healthcare real estate, especially dental practices, as his research shows they have some of the lowest tenant default rates, making them a safer investment option. Challenges and Lessons Learned Listen to this episode to hear Austin discuss the biggest challenges he has faced in raising capital and to learn about the single most effective way he has found to connect with more investors for his fund. *** Explore the world of real estate capital allocators—a fresh approach to financing that’s reshaping the industry. In this series, I talk with allocators, investors, sponsors, and service providers to give you an inside look at this fast-growing space. PLUS, subscribe to my free newsletter for real estate investors and gain access to: * Introductions to sponsors, allocators, and investment opportunities. * Insights drawn from my 30+ years of experience in real estate investing. * Hacks and tactics for raising capital to help you scale your real estate portfolio. Visit GowerCrowd.com/subscribe…

The Real Estate Market Watch - current events through a real estate lens.

1
A Day in the Life of a Capital Allocator 36:58

vor 14 weeks36:58

36:58

Meet real estate capital allocator Nick Stromwall, founder of Oak and Vine Capital, in this week’s edition of my podcast/YouTube show, The Allocator: A New Way to Finance. The Role of a Capital Allocator As an allocator, and unlike sponsors who source deals, sign on debt, and execute business plans, Nick works with sponsors to raise capital for their deals. He pools funds from his own investor network to secure larger-than-minimum investment thresholds, in return for which he negotiates preferential terms. Insights and Lessons from the Field Nick shares the details of his process, providing insights you won’t hear elsewhere: • He discusses his typical average raise and the terms he negotiates with sponsors. • He explains how he gets compensated, how he shares preferential terms with his investors, and the additional fees he collects from them. • Nick outlines his due diligence process, evaluating sponsor track records, ethics, and community impact. Part of Nick’s unique value proposition in an increasingly crowded field of capital allocators is his focus on more than just financial returns (though those are, of course, important). He emphasizes creating lasting community impact. Challenges & Myths Nick also talks about how he uses AI and automation to remain compliant with securities laws. He candidly shares the challenges he has faced in recent years as the market has shifted and discusses the lessons you can also learn from. Additionally, Nick addresses common myths associated with the capital allocator business - insights that every aspiring allocator should hear. *** Whether you're an investor, sponsor, or simply curious about the growing capital allocator industry, this episode unpacks the details and nuances behind the model. *** Explore the world of real estate capital allocators—a fresh approach to financing that’s reshaping the industry. In this series, I talk with allocators, investors, sponsors, and service providers to give you an inside look at this fast-growing space. PLUS, subscribe to my free newsletter for real estate investors and gain access to: * Introductions to sponsors, allocators, and investment opportunities. * Insights drawn from my 30+ years of experience in real estate investing. * Hacks and tactics for raising capital to help you scale your real estate portfolio. Visit GowerCrowd.com/subscribe…

The Real Estate Market Watch - current events through a real estate lens.

1
$11 Million of Equity Raised in Year One! 56:36

vor 15 weeks56:36

56:36

In today’s show, I welcome Bobby Sharma, co-founder of Connected Capital Fund, an exclusive membership organization of capital allocators - people who pool investor capital to negotiate preferential terms with sponsors. Bobby is also the manager of Better Capital Fund, his private money lending fund. Although Connected Capital Fund is just a year old, the organization has already allocated capital to vetted sponsors across markets including Dallas, San Francisco, and Lincoln, Nebraska, raising and investing $11 million in its first year of operation. Case Study Bobby explains that the Connected Capital Fund team has reviewed fifty deals but invested in only six so far, illustrating their highly selective due diligence process, mitigating risks that individual investors might overlook while providing them with enhanced returns. As an example, Bobby shares a case study involving a deal with a self-storage operator. The sponsor initially offered investors a 70/30 split with a 6% preferred return. However, Connected Capital secured a 90/10 split and increased the preferred return to 8%. These favorable terms were then passed on to Connected Capital Fund members, who promoted them to their networks of investors. Depending on the deal, allocators may either retain the entire delta between the original and negotiated terms or share the benefits with their investors. Allocator Co-Investment Bobby also discusses the practice of backfilling deals. In this process, after a minimum investment is agreed upon with a sponsor, Bobby acts as the first investor, providing the full amount required to meet the threshold. He then raises additional capital from other investors, 'backfilling' his initial capital contribution. In 95% of cases, he leaves a portion of his own capital in the deal to maintain alignment with investors though, on rare occasions, if demand is particularly strong, he may relinquish his position entirely, leaving no co-investment in the deal. Bobby was the first fund manager client of Avestor, a platform designed for capital allocators (whose co-founder, Badri Malynur - who was the first guest in this podcast series). He is highly knowledgeable about the capital allocator industry being an allocator himself as well as leading Connected Capital Fund, an organization of allocators. Tune in to learn more about this emerging industry of capital raisers in today’s episode - you’ll be glad you did. ***** Explore the world of real estate capital allocators—a fresh approach to financing that’s reshaping the industry. In this series, I talk with allocators, investors, sponsors, and service providers to give you an inside look at this fast-growing space. PLUS, subscribe to my free newsletter for real estate investors and gain access to: * Introductions to sponsors, allocators, and investment opportunities. * Insights drawn from my 30+ years of experience in real estate investing. * Hacks and tactics for raising capital to help you scale your real estate portfolio. Visit GowerCrowd.com/subscribe…

The Real Estate Market Watch - current events through a real estate lens.

1
Demystifying the Capital Allocator Model 52:42

vor 16 weeks52:42

52:42

My guest today, Jeff Greenberg, founder of Synergetic Investment Group, is a capital allocator whose business model focuses on identifying, vetting, and providing capital to sponsors by aggregating funds from his network of investors. Aggregating Investor Funds By pooling investor capital, typically $1MM or more, Jeff negotiates preferential terms with sponsors, such as higher preferred returns and better promote splits than individual investors could secure on their own. Through his fund, Jeff offers his investors the opportunity to allocate capital according to their preferences among the offerings he promotes. Negotiated Benefits for Investors Jeff explains that the delta he negotiates with sponsors is partially passed on to his investors through returns that are at least equal to or better than what they would achieve by investing directly with the sponsor. He retains some or all of the delta as compensation for his role in aggregating capital, negotiating terms, and conducting due diligence. Rigorous Due Diligence Together with a group of other capital allocators via the Connected Capital Fund group, Jeff utilizes a 250-point due diligence checklist to select and screen sponsors. This process includes analyzing business structures, assessing team competencies, and evaluating operational controls. Challenges in the Market Throughout his capital allocation activities, Jeff has raised a total of $6–7 million. However, in 2024, he raised only $100,000, reflecting the challenges of the market. When possible, Jeff invests alongside his fund investors to align his interests with theirs. Concerns About the Allocator Model Jeff expressed concern about other capital allocators who lack operational experience and fail to conduct thorough due diligence. This can undermine the quality of deals in the industry and damage the reputation of the allocator model when poorly vetted projects fail. Dispelling Misconceptions He also addressed the misconception that the allocator model is a quick and easy path to wealth. Many new entrants, lured by promises of simplicity, fail to appreciate the effort required to build trust with investors, properly vet sponsors, and manage deals effectively. Listen to this episode, meet Jeff, and learn more about the capital allocator model. ***** Explore the world of real estate capital allocators—a fresh approach to financing that’s reshaping the industry. In this series, I talk with allocators, investors, sponsors, and service providers to give you an inside look at this fast-growing space. PLUS, subscribe to my free newsletter for real estate investors and gain access to: * Introductions to sponsors, allocators, and investment opportunities. * Insights drawn from my 30+ years of experience in real estate investing. * Hacks and tactics for raising capital to help you scale your real estate portfolio. Visit GowerCrowd.com/subscribe…

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Podcasts, die es wert sind, gehört zu werden

The Real Estate Market Watch - current events through a real estate lens.

The Real Estate Market Watch - current events through a real estate lens.

Podcasts, die es wert sind, gehört zu werden

Willkommen auf Player FM!

The Let Them Theory: A Life-Changing Tool That Millions of People Can't Stop Talking About

The Let Them Theory: A Life-Changing Tool That Millions of People Can't Stop Talking About

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The Let Them Theory: A Life-Changing Tool That Millions of People Can't Stop Talking About

Ähnelt The Real Estate Market Watch - current events through a real estate lens.

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